Internet Adoption and Usage in China

This article examines China's fast-growing Internet market from the perspective of its users in terms of adoption dynamics and usage patterns. Present users are an elite group whose profile is presented in the article. The Internet is used mostly for such applications as e-mail, browsing, research, and online chat. Internet telephony and online shopping are among the emerging trends. The Internet is increasingly used as a major source of information. The amount of time spent online is limited by the combined costs of Internet access and telephone charges. Some associations between Internet use and demographics are explored. Finally, suggestions are made to target the problems of huge online expenses, slow speed and content development. Introduction: Internet in China Although the Internet has experienced booming growth, the diffusion of this powerful communications technology has not been even throughout the world. Some countries have achieved a high penetration of Internet host computers, while many others are in the early stages of adoption. Internet development in China in recent years has attracted interest and attention from the industry, academia, and policy makers. Over the past few years, Internet development in China has been phenomenal. By the end of 1994, a conservative estimation of total Internet users in China was 1,600. In 1995 there were 6,400 users. The growth rate during the period of 1996-1998 averaged 300%, three times more than the rest of the world. China had registered 2.1 million Internet surfers by December 31, 1998, showing an increase of 1.43 million or 213% over 1997. By June 30, 1999, the user base had increased to 4 million. Figure 1 illustrates Internet growth in China between 1996 and 1998. It is predicted that China will have 6-7 million Internet users by 2000. This would make China the biggest Internet market in Asia-Pacific outside Japan. At this stage of Internet diffusion, one essential concern is how the